Yes, the seal is a bear to get out. I mentioned a few things to look for while evaluating the bearing. There's no way to tell if it's spent. It either looks good, or it's not fit for further use. Where is the play you felt? Anything darker than a light straw color indicates heat damage and the bearing should be replaced. They are replaced as a set. (There are two sets of bearings on each front wheel).
As long as the grease you have has EP additives, you should be okay. For the anal-retentive, Mobil synthetic is a good grease, if you can get it. There's a new grease that just came on the market that is superior to Mobil synthetic. It's called Exxon Infinitec - much more water resistant. I'm not sure where you can get it. I have an inside track for these greases.
95 E320 Cabriolet, 131K